Stay updated on taxation news, tax laws, FBR policies, compliance, audits, income tax, sales tax, and fiscal developments in Pakistan.
Proposed relief target withholding tax on property transactions for filers as budget details emerge ahead of FY2026-27
The government is considering significant tax relief measures for Pakistan’s real estate sector in the upcoming FY2026-27 budget, aiming to stimulate economic activity, boost construction and generate employment, according to sources familiar with the matter.
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Ombudsman says tax deposits cannot be taken without legal assessment; orders FBR to ensure due process and transparency in inquiry proceedings
The Federal Tax Ombudsman (FTO) has held that obtaining tax deposits during inquiry proceedings without first determining liability through lawful assessment procedures constitutes maladministration and violates principles of due process and fair administration.
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Former PSP officer to head key body tasked with identifying and confiscating assets held through proxy ownership under Benami law
The federal government has appointed retired BS-22 Police Service of Pakistan officer B.A. Nasir as Chairperson of the Benami Adjudicating Authority, according to a notification issued by the Federal Board of Revenue (FBR).
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Constitutional court overturns LHC ruling, says exempt poultry farmers cannot be compelled to register for sales tax
The Federal Constitutional Court (FCC) has ruled that poultry farmers are not legally required to obtain sales tax registration, holding that their activities are already exempt from sales tax under the Sales Tax Act, 1990.
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Prime Minister directs FBR to settle outstanding tax refunds within two weeks to improve business liquidity and investor confidence
Prime Minister Muhammad Shehbaz Sharif on Monday directed the Federal Board of Revenue (FBR) to clear all pending tax refund cases by June 15, 2026, in a significant move aimed at easing liquidity pressures on businesses and improving the investment climate.
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Adviser says revised projections reflect macroeconomic changes, denies claims of fiscal shortfall or revenue crisis
Pakistan has revised downward the Federal Board of Revenue’s (FBR) tax collection target for fiscal year 2025-26 (FY26) to around Rs13 trillion, down from the original Rs14.13 trillion, according to the Finance Ministry adviser, who said earlier claims of a large revenue shortfall were misleading.
(more…)Government resists IMF proposal for GST increase as officials weigh revenue measures ahead of federal budget
Pakistan is unlikely to raise the General Sales Tax (GST) rate in the federal budget for 2026-27 despite a proposal from the International Monetary Fund (IMF), as authorities remain concerned about the inflationary impact of higher indirect taxes amid rising fuel costs, sources said.
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FPCCI leader warns IMF-backed sales tax hike to 19% could further shrink registrations and expand the grey economy
KARACHI: Khurram Ijaz, General Secretary and former Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has expressed concern over the declining number of active sales tax registrations in the country, describing it as a reflection of a growing trust deficit in the taxation system due to high sales tax rates.
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Tax body urges amendment to align sales tax law with FBR’s digital registration procedures
The Karachi Tax Bar Association (KTBA) has highlighted procedural hurdles in the Federal Board of Revenue’s (FBR) online tax system, saying registered taxpayers face difficulties in declaring business bank accounts because the prescribed sales tax registration form is no longer available on the tax authority’s digital platform.
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Revenue shortfall nears Rs868 billion as tax authorities intensify enforcement efforts before fiscal year-end.
Taxpayers are likely to face heightened scrutiny in June as the Federal Board of Revenue (FBR) prepares an aggressive enforcement drive to maximize revenue collection and reduce a substantial shortfall before the close of fiscal year 2025-26.
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